Double-Digit Growth Rates As SEO, PPC & Social Media Continue To Grow
Search Engine Land reported yesterday on SEMPO’s (Search Engine Marketing Professional Organization) sixth annual State of Search Engine Marketing Report and, not surprisingly, the numbers are big.
According to the report, North American search engine marketing spending will grow to about $16.6 billion by the end of 2010 – a $2 billion, or 14%, increase from $14.6 billion in 2009.
What Does SEM Double Digit Growth Mean For The Individual Components Of The Industry?
The State Of Social Media Marketing
According to Search Engine Land’s take, the state of social media marketing is improving, but the numbers haven’t quite lived up to the massive buzz surrounding social media as a marketing tool.
Search Engine Land’s Chris Sherman called social media spending “insignificant” when compared to SEO and paid search. According to the report, 73% of companies surveyed had budgets of less than $25k – 23% of whom had zero budget for social media. 2010 budgets are expected to gain, though – 59% said they will boost social media spending.
The State Of Search Engine Optimization And PPC
SEO remains a steady portion of the marketing diet for most of the companies polled. Some 90% of businesses use some type of SEO, but that number hasn’t changed since 2007, according to the report. Sherman reports that the amount of in-house SEO ticked up slightly from 2009 to 2010 by about 1%.
Paid search marketing has seen steady growth since 2008. The number of companies utilizing PPC is at 81% for 2010 – up from 70% in 2009 and 78% the previous year. In-house paid search actually dropped by 10% from 2009.
With Tight Budgets All Around, Where Does This Spending Come From?
Funding for Search Engine Marketing has to come from somewhere. Sherman writes:
“On average, companies expect to spend 43% more on SEO and 37% more on paid search in 2010 than they did in 2009. Where is the budget coming from? About 49% are reallocating budgets to search engine marketing, moving spend from print advertising. 36% are shifting money from direct mail, and almost a quarter are moving budgets from conferences and exhibitions and web display advertising.”
Of course, the SEMPO report predicts that the state of Search Engine Marketing will continue to grow into 2011. It certainly is an interesting time to be in an interesting (and growing) industry.